GDS Holdings (STU:G40) Moat Score: 5/10 (As of Jul. 11, 2026)


STU:G40 GDS Holdings Ltd STU:G40
72 GF Score
Price €28.40
GF Value €18.39
Valuation Significantly Overvalued
! 5 Warning Signs
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What is GDS Holdings Moat Score?

GDS Holdings STU:G40 72 Moat Score is 5 as of Jul. 11, 2026. GuruFocus rates STU:G40 with a GF Score™ of 72/100 and a GF Value™ of €18.39 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,835 Software companies, GDS Holdings ranks better than 94.78% on this metric.

GDS Holdings has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

GDS Holdings has Narrow Moat: GDS Holdings Ltd has a solid narrow moat due to its strong position in the Chinese data center market and economies of scale. However, intense competition and regulatory challenges limit its moat to a narrow category.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes GDS Holdings might have Narrow Moat - Solid narrow moat.

GDS Holdings  (STU:G40) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

GDS Holdings Moat Score Related Terms

STU:G40 vs PSN, INGM, G: Moat Score Comparison

For the Information Technology Services subindustry, GDS Holdings's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

GDS Holdings Moat Score vs Software Industry

For the Software industry and Technology sector, GDS Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where GDS Holdings's Moat Score falls into.


STU:G40
72GF Score
GDS Holdings Ltd STU:G40
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
GDS Holdings (STU:G40) has a Moat Score of 5 as of Jul. 11, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, GDS Holdings ranks #148 out of 2835 companies in the Software industry, placing it in the top 5.2%.
Is GDS Holdings' Moat Score too high?
GDS Holdings' current Moat Score is 5. Based on the distribution chart, GDS Holdings ranks #148 out of 2835 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GDS Holdings has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Moat Score compare to PSN and INGM?
According to the Software industry distribution chart, GDS Holdings ranks #148 out of 2835 companies for Moat Score. This places GDS Holdings in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. GDS Holdings's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (STU:G40) is currently considered Significantly Overvalued. The stock's GF Value™ is €18.39, compared to a current price of €28.40 — trading 54.4% above its estimated fair value. The current Moat Score is 5. GDS Holdings' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For GDS Holdings (STU:G40), the current Moat Score is 5 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is GDS Holdings (STU:G40) Overvalued in 2026?

Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued. The current stock price of €28.40 is trading 54.4% above its estimated GF Value™ of €18.39. GuruFocus considers GDS Holdings to be Significantly Overvalued.

Key valuation signals for STU:G40:

  • Moat Score: 5
  • GF Value™: €18.39 vs. price of €28.40 (54.4% above fair value)
  • GF Score™: 72/100 with 5 warning signs

No single metric tells the full story. See the STU:G40 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

GDS Holdings Business Description

Address No. 999 Zhouhai Road, F4/F5, Building C, Sunland International, Pudong, Shanghai, CHN, 200137
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
72GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€28.40
Price
€18.39
GF Value